Background and Aim: Human cutaneous infections are caused by a homogeneous group of kreatinophilic fungi, called Dermatophytes. Such infections are accounted as a principle public health, at present. Microsporum gypseum a cause of baldness in Iran. Cases occur sporadically due to Microsporum gypseum in puppies and soil and is transmitted to humans. Since these pathogenic dermatophytes are eukaryotae, their chemical treatment with antifungal drugs may also affect host tissue cells. Thus, the present study aimed at determining antifungal effects of terrigenous actinomycetes agents on these pathogens. Materials and Methods: In this experimental study, 100 terrigenous actinomycetes isolates derived from soil of Kerman city were studied in order to assess their antifungal effect on microsporum gypseum.The fungi were obtained from Persian Type Culture Collection (PTCC) in the Iranian Research Organization for Science and Technology (IROST). Electron microscope studies and the physiological properties of these antagonists such as, lipase activity, amylase, protease, and chitinase active isolates were performed according to the relevant protocols. Results: The present study showed that actinomycete isolates containing Ks10, Kn10, and 115 had the most antagonistic in vitro effect on Microsporum gypseum. Electron Microscope images revealed various forms of spores, mycelia, and spore chain morphology. Conclusion: The findings of the present research show that terrigenous actinomycetes have an antifungal effect upon Microsporum gypseum. So, one hopes that-in future-rather than administering antifungal chemicals that have side-effects, dermatophytic infections can be cured by applying these actinomycetes.